What are some things to think about before opening a Restaurant?
The restaurant industry is a vast industry with many opportunities to take a bite out of profits. Restaurants are a great wear for those with an Entrepreneurial spirit and a love for food to thrive but you have to have the right ingredients some things to consider before opening a restaurant is a very good and detailed business plan, marketing, licenses permits and insurance, location,Name,Funding,Target customers, Competition
Business plan
The age old adage of those who fail to plan also plan to fail is true having a great restaurant is more than just cooking great food. One important ingredient to success is a great point of sale system a point of sale system helps to connect the front and back of the house this system is the lifeblood of communication between the frontline staff and the people in the kitchen a good point of sale system helps to get food out in a timely fashion and helps to cut back on food getting sent back because of a break down in communication the key to profits in a good restaurant is efficiency and a good point of sale system goes a long way to improving the efficiency of a restaurant. A restaurant owner should identify which point of sale system they will be using in a business plan as well as a good accounting software. Whenever you are dealing with a traditionally cash business like a restaurant a good accounting software is necessary the right accounting software helps you focus less on tracking down every last dollar that goes in and out and helps you focus more on what you do best insuring that quality food is being served that will keep your patrons coming back.
Marketing
What good is serving the best food if nobody knows about it? A very crucial component of having a successful restaurant is marketing. Marketing is also what trips up a lot of new businesses because it is a very easy way to overspend profits that may not have materialized yet. Investing in a good website is a must in modern times most customers interact with your website before they ever visit your brick and mortar location. A good website will help customers understand your story whether they are finding you on google, Yelp,Social media, etc there interaction with your website is what will lure them in before they ever step foot into your Restaurant. Marketing your restaurant effectively will also put it on the map where food critics have to pay attention and eventually check out what all of the fuss is about. A free way to market your new restaurant maybe to join restaurant coalitions where new restaurants benefit from being mentioned among more established restaurants that people may already know and trust.
Location
Before signing the dotted line on a lease or purchasing a space for your soon to be 5 star restaurant consider the location. A good location for a restaurant should be highly visible near other retails shops and storefronts ideally in a highly trafficked area. One thing most people also overlook is parking! the parking at your restaurant is almost as important as the actual space that the restaurant will utilize. If people cannot easily park and visit your restaurant you will have a hard time maintaining consistent traffic to your restaurant. A restaurant located right off of a highway or close to other restaurants are often busy. People like to identify the next place they want to eat while shopping retail or even visiting another restaurant close by.
Insurance, Licenses, Permits
Before opening the doors to you new restaurant you have to make sure that you have the proper Insurance,Licenses, and permits in place. One Insurance policy that you will want to have is a Business Owner policy. A business Owner Policy will insure the nice and shiny and expensive restaurant equipment that you have purchased for your new restaurant many people overlook that new restaurant equipment can be a target for theft and having the right Business Owner policy in place can give you peace of mind. New restaurant owners will want to keep in mind the additional component to a Business Owner policy is a General Liability policy this policy safeguards your restaurants from any patrons that may want to sue your business for a myriad of different issues that may arise during the normal course of business. General Liability policies protect the business owner from lawsuits that may arise because of slip and fall on the premises employee behavior, food Bourne illness etc. It is also advised that when opening a new restaurant the proper occupancy licenses , liquor licenses and permits are obtained.
Funding
Funding is a very important part of the restaurant journey. Whether renting a space for your new restaurant or purchasing a property that will be built out for your dream restaurant funding will come into play. Restaurants require a lot of costly equipment in order to prepare food efficiently for a large number of people. There are many different sources to get funding for your restaurant whether you go the traditional route and get a business loan from the bank or turn to alternative funding strategies like private money , friends and family, grants or credit unions knowing how to access funding or your project can make or break your dream restaurant aspirations.
Target Customers
Who are your target customers for your restaurant? Great restaurants know their target market and cater to them any chance that they get. As a restaurant owner do you want to go after low end client and provide good food and an affordable price or is your niche fine dining catering to a more discerning palette with customers who demand only the most quality ingredients and will not hesitate to pay for it?
